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Crisis offers chances for Chinese cars entering West Europe

(Xinhua)
Updated: 2009-03-14 11:36

Business leaders attending a logistics conference held in Bremen, Germany, said Friday that the global economic crisis might bring opportunities for Chinese cars to enter the Western European market.

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Tong Zhiyuan, chairman of Chinese carmaker Huatai, said that because the purchasing power of most European families was affected by the economic crisis, some European countries have encouraged the purchase of low-emission cars, which is "favorable" for Chinese automakers.

"At least, the chances are bigger than before," Tong told Xinhua.

As of now, only a small group of Chinese-brand cars have been sold in Ukraine, Russia and some other Eastern European markets. Entering the Western European market is challenging for those carmakers.

To compete with their European peers, Tong said Chinese carmakers have to let local customers know of their vehicles' high quality, find the proper partners to explore the market and set up efficient logistics and distribution systems.

Hans-Ulrich Sachs, president of HSO, a Luxemburg-based general agent of China's Brilliance Auto in Europe, expressed confidence in Chinese cars.

Sachs told Xinhua that Brilliance cars have sold well and his target was 6,000 units for this year.

"On April 7, another 200 Brilliance will arrive in Bremerhaven, " he said.

Germany has the biggest automobile market in Europe and the volume of car sales hit more than three million units in 2008.

In February, the German government introduced an incentive policy, which stipulates that car buyers can get 2,500 euros ($3,200) in refunds from the state if they replace their old cars aged nine years or above.

The incentive policy caters to small and low-emission cars and currently many South Korean and Japanese vehicles are being sold as a result.

"I think Chinese cars can also get some market shares if they strive to explore the market," Sachs said.

Sachs said around 25 percent of European customers have some knowledge of Chinese cars and Chinese automakers should shift from a strategy of price competition to one of seeking high quality and brand management.

However, Fank Schnelle, a manager from Bremen-based BLG, a logistic giant providing solutions for Chinese carmakers Chery, Brilliance Auto and Geely, was not so optimistic.

Schnelle said that Chinese carmakers still need to upgrade their competitiveness in order to enter the Western European market but it is possible for them share a stake in the market in the future.